The Real Deal New York

Sherwood scores $232M to refi
1600 Broadway, 2 Times Sq.

Helaba is the lender for the two Midtown properties
By Miriam Hall | April 19, 2017 08:00AM

1600 Broadway and 2 Times Square

UPDATED, April 19, 10:42 a.m.: Sherwood Equities secured a combined $232 million to refinance two buildings in Times Square, the company told The Real Deal.

German bank Helaba is the lender on the buildings at 1600 Broadway and 2 Times Square. The loans are for a 10-year term at a fixed rate.

The financing for 2 Times Square totals $164 million. The 233,285-square-foot building is home to the 310-key Renaissance New York Times Square Hotel, as well as retail space and advertising billboards.

The loan for 1600 Broadway, a 160,000-square-foot building, is $68 million and backed by the retail space leased to the M&M’s Store and by two Budweiser signs. The upper floors of the building house 137 luxury condominiums. Both buildings are nearly 100 percent occupied.

The building at 2 Times Square previously had a $175 million loan, issued in 2007, property records show. Previous loans on 1600 Broadway total $72 million from three separate mortgages issued between 2006 and 2015. Helaba was the lender on all previous financing, and the new loans only refinanced the pre-existing principal.

Sherwood, led by Jeffrey Katz, also owns the Saratoga at First Avenue and East 75th Street. It manages 1 Times Square, having sold the building to Jamestown in 2012 for $113 million.

In 2014, the company sold a Hudson Yards development site to Frank McCourt for $167 million — more than triple the price Sherwood and its partner Long Wharf Real Estate Partners paid in 2011. It also sold two Hudson Yards parcels to Tishman Speyer the same year for $200 million.

Sherwood Has Developed Residential Projects Such As 500 West 21st Street, 130 Barrow Street and 330 West End Avenue.

A representative from Helaba could not be immediately reached for comment.

Chava Gourarie contributed reporting.

Correction: An earlier version of this story stated Sherwood owns 1 Times Square. The firm manages the building.

(To see more properties owned by Sherwood Equities, click here)